Apple today held its earnings release for the fiscal second quarter (first calendar quarter) of 2026 after reporting its best March quarter ever. Apple reported revenue of $111.2 billion with double-digit growth across all geographies and product categories. Apple CEO Tim Cook and Apple CFO Kevan Parekh provided insight into iPhone sales, Mac sales, RAM supply issues, and more.
We’ve rounded up the most interesting takeaways from the call.
iPhone 17 sales
Apple attributed its success to new iPhone models. Cook said “demand was off the charts,” but Apple faced supply constraints that impacted revenue. If there were no supply issues, Apple would have seen its revenues increase.
TSMC’s A19 and A19 Pro chips proved to be a bottleneck because TSMC uses the same 3nm process for high-demand AI chips. Cook said the iPhone’s constraints were “primarily driven” by the availability of the advanced nodes on which Apple’s SoCs are produced.
According to Parekh, the iPhone 17 family is Apple’s best-selling iPhone lineup to date. “The iPhone 17 family is now the most popular line in our history…we believe we gained market share during the quarter,” he said.
iPhone revenue was $57 billion, up 22% year-over-year, setting a new record for the March quarter. Apple has seen strong demand from upgraders and customers choosing an iPhone for the first time. Cook said Apple was “extremely pleased” with how the iPhone 17 line had been received.
Memory costs
Apple experienced higher memory costs in the March quarter, and the impact is expected to worsen as the year progresses. Apple CEO Tim Cook said Apple expects “significantly higher memory costs” in the June quarter and that beyond June, memory costs will have “an increasing impact” on Apple’s business.
Mac Sales
Mac revenue was $8.4 billion, up 6% year-over-year. Cook said sales were affected by supply constraints “driven by higher than expected levels of demand”.
The MacBook Neo introduced during the quarter was a success and Apple sold it. Shipping times for new machines have reached several weeks. Apple has also seen strong demand for the Mac mini and Mac Studio from people buying machines intended for use with AI.
Apple set March quarter records for upgrades and new Mac customers, leading to a new all-time high for the overall Mac install base. Apple focuses on customers who are new to the Mac and those who have kept their Macs for a long time, and the Neo sells well to these customers.
Apple expects Macs to face supply constraints in the June quarter due to continued high demand and “less flexibility in the supply chain.”
Mac Studio and Mac mini supplies
Apple expects it will take months to reach supply/demand balance on the Mac Studio and Mac mini, suggesting they will be difficult to achieve in the coming months.
Apple underestimated demand for the Mac mini and Mac Studio. “These two are incredible platforms for AI and agent tools and customers are realizing them faster than we anticipated, and so we’ve seen higher demand than we expected,” Cook said.
John Ternus
Cook spoke to John Ternus, who will take over as CEO of Apple on September 1, 2026.
Like I said, there is no one on this planet I trust more to lead Apple into the future than John Ternus. John is a brilliant engineer, a deep thinker, a person of remarkable character and a born leader. I know it will push us to go further than we think possible in order to provide the best products and services to our users. I have been so proud to call him a colleague and friend, and I will be even more proud to call him CEO of Apple.
Ternus also spoke on the call, where he teased Apple’s upcoming product line.
As Tim mentioned, we have an incredible roadmap ahead of us. And while you’re not going to get me into the details of that roadmap, suffice it to say that this is the most exciting time in my 25-year career at Apple building products and services.
There are so many opportunities ahead of us, and I couldn’t be more optimistic about what lies ahead. For now, let me just say that I am deeply grateful to Tim, the leadership team, and everyone at Apple, and I look forward to all the important work ahead of us.
Wearable devices
Wearables revenue was $7.9 billion, an increase of 5% year-over-year. Apple’s wearables install base reached a new all-time high, and more than half of the customers who purchased an Apple Watch during the quarter were new to the product.
Services
Apple’s services revenue reached $31 billion, a new all-time revenue record.
Apple has an installed base of more than 2.5 billion active devices, a new all-time high across all major product categories. Transactional and paid accounts reached new all-time highs during the quarter.
Retail
Apple reported record March quarter retail revenue, with “very high levels of in-store traffic throughout the quarter.”
AI
Parekh said that AI is a “really important area of investment” for Apple, and that the company plans to continue investing in AI “incrementally on top of” what it normally invests in its product roadmap.
Apple’s R&D spending accelerated during the quarter and Cook said Apple was investing in products and services. “We see opportunities in both areas,” he said. “We couldn’t be more excited about how the future will unfold.”
Regarding the collaboration with Google, Cook said things were going well. “We are satisfied with the current situation and we are also satisfied with the work we are doing independently,” he said.
Prices
From the first quarter to the second quarter, Apple saw less impact from tariffs due to the IEEPA tariff rate reduction and the reduction in the global Section 122 tariff rate. Cook said Apple followed established processes for requesting a refund of customs duties paid and any amounts received would be reinvested in innovation and advanced manufacturing in the United States. Any refunded tariff fee investment will be in addition to Apple’s prior commitments in the United States.
Next quarter
Parekh said total revenue for the June quarter is expected to grow 14-17 per cent year-on-year. Services revenue is expected to grow at a similar pace as reported in the March quarter.
Parekh warned investors about iPad revenues because last year Apple launched the A16 iPad. “Keep in mind that we are facing a tough comparison due to the launch of the A16-powered iPad the previous year,” Parekh said.
Apple’s guidance for the June quarter is based on tariff rates and global policies remaining as they are today.